Maximus Federal Services awarded $79.6M for Ticket to Work Program support, a recompete of existing contracts

Contract Overview

Contract Amount: $79,633,454 ($79.6M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Social Security Administration

Start Date: 2015-09-29

End Date: 2022-03-31

Contract Duration: 2,375 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF - COMBINED RECOMPETE OF SS00-10-60103 FOR BENEFICIARY ACCESS&SUPPORT SERVICES (BASS) AND SS00-10-60102 FOR OPERATIONS SUPPORT MANAGER (OSM) FOR OPERATIONAL SUPPORT OF THE TICKET TO WORK PROGRAM.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $79.6 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: IGF::CT::IGF - COMBINED RECOMPETE OF SS00-10-60103 FOR BENEFICIARY ACCESS&SUPPORT SERVICES (BASS) AND SS00-10-60102 FOR OPERATIONS SUPPORT MANAGER (OSM) FOR OPERATIONAL SUPPORT OF THE TICKET TO WORK PROGRAM. Key points: 1. The contract represents a significant investment in supporting beneficiaries seeking employment through the Ticket to Work program. 2. Full and open competition was utilized, suggesting a robust market response and potential for competitive pricing. 3. The contract's duration of nearly 8 years (2375 days) indicates a long-term need for these services. 4. The 'Administrative Management and General Management Consulting Services' NAICS code points to a focus on operational efficiency and program management. 5. The contract is a recompete, implying a history of performance and established relationships with the Social Security Administration. 6. The use of a Cost Plus Fixed Fee (CPFF) contract type warrants scrutiny regarding cost control and contractor incentives.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. However, the total award of $79.6 million over approximately 8 years suggests an average annual spend of around $10 million. This figure needs to be compared against the scope and impact of the Ticket to Work program's operational support. The CPFF contract type, while allowing for flexibility, can sometimes lead to higher costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee. Further analysis would require understanding the specific services rendered and their effectiveness in achieving program goals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that there were 4 bidders suggests a healthy level of competition for this service. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government. The agency's decision to use full and open competition implies confidence in the market's ability to provide qualified contractors for these essential support services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider pool of contractors to vie for government work, potentially leading to better value for the funds expended.

Public Impact

Beneficiaries of the Social Security Administration's Ticket to Work program, who are seeking employment and vocational rehabilitation services. The contract delivers essential operational support, management consulting, and administrative services to ensure the effective functioning of the Ticket to Work program. The geographic impact is national, as the Ticket to Work program serves beneficiaries across the United States. The contract supports a workforce involved in program administration, beneficiary support, and management consulting within the federal contracting space.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored, as the contractor is guaranteed their costs plus a profit.
Long contract durations, like this one, can sometimes lead to complacency or a reduced sense of urgency if performance is not continuously evaluated.
Recompetes, while often efficient, can sometimes limit the introduction of innovative solutions if the incumbent's approach is heavily favored.
The specific performance metrics and Service Level Agreements (SLAs) are not detailed, making it difficult to assess the contractor's performance objectively.
Reliance on a single large contractor for critical program support could pose a risk if the contractor faces financial instability or operational disruptions.

Positive Signals

The use of full and open competition indicates a competitive marketplace, which typically leads to better pricing and service quality.
The contract is a recompete, suggesting that the incumbent contractor has a proven track record of performance with the agency.
The long duration provides stability and continuity of services for the Ticket to Work program, ensuring consistent support for beneficiaries.
The Social Security Administration has established oversight mechanisms for such contracts, aiming to ensure accountability and effective service delivery.
The contract's focus on administrative management and consulting services suggests an effort to optimize program operations and efficiency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise in areas like program management, efficiency improvements, and strategic planning. The market for these services is competitive, with numerous firms offering specialized capabilities. The Social Security Administration's spending in this area is consistent with its need for ongoing operational support and program administration to manage complex social insurance programs effectively. Comparable spending benchmarks would involve analyzing other large-scale administrative support contracts within federal agencies managing similar public services.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a small business set-aside component (ss: false, sb: false). While the prime contractor, MAXIMUS FEDERAL SERVICES, INC., is a large entity, the contract terms do not explicitly mandate subcontracting goals for small businesses. However, large federal contracts often involve a network of subcontractors, and it is possible that small businesses could be engaged in providing specialized services or support. The absence of a specific set-aside or clear subcontracting plan means the direct impact on the small business ecosystem is not guaranteed and would depend on the prime contractor's procurement practices.

Oversight & Accountability

The Social Security Administration (SSA) is responsible for the oversight of this contract. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is expected to ensure that all costs incurred are allowable, reasonable, and allocable, and that the fixed fee is earned appropriately. The SSA likely employs contract officers, program managers, and potentially contracting specialists to monitor performance, review deliverables, and manage the overall relationship. Transparency is typically maintained through regular reporting requirements from the contractor and internal agency reviews. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the SSA's Office of the Inspector General (OIG) generally has oversight authority over SSA program

Related Government Programs

Ticket to Work Program
Social Security Administration Disability Insurance (SSDI)
Supplemental Security Income (SSI)
Vocational Rehabilitation Services
Federal Administrative Management Consulting Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration necessitates continuous performance monitoring to ensure sustained effectiveness.
Recompete nature may limit opportunities for disruptive innovation compared to new contract awards.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $79.6 million to MAXIMUS FEDERAL SERVICES, INC.. IGF::CT::IGF - COMBINED RECOMPETE OF SS00-10-60103 FOR BENEFICIARY ACCESS&SUPPORT SERVICES (BASS) AND SS00-10-60102 FOR OPERATIONS SUPPORT MANAGER (OSM) FOR OPERATIONAL SUPPORT OF THE TICKET TO WORK PROGRAM.

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $79.6 million.

What is the period of performance?

Start: 2015-09-29. End: 2022-03-31.

What is the historical spending trend for the Ticket to Work Program's operational support services?

The provided data focuses on a single contract awarded in 2015 with an end date in 2022, totaling $79.6 million. This represents a significant portion of the program's support costs during that period. To understand historical trends, one would need to examine prior contracts for similar services, potentially looking at the combined value of the recompeting contracts (SS00-10-60103 and SS00-10-60102) and any contracts preceding them. Analyzing year-over-year spending for operational support, including administrative management and consulting services, would reveal whether spending has increased, decreased, or remained stable. Factors influencing these trends could include changes in program scope, beneficiary enrollment, legislative mandates, or shifts in contracting strategies by the Social Security Administration.

How does the per-unit cost of beneficiary support services under this contract compare to industry benchmarks?

Determining a precise 'per-unit cost' for beneficiary support services under this contract is complex due to the nature of the services provided (administrative management, consulting) and the CPFF contract type. Unlike contracts with easily quantifiable units (e.g., per widget produced), beneficiary support involves a range of activities, case management, and program administration. To benchmark, one would need to identify specific, measurable outputs or outcomes (e.g., cost per successful employment placement facilitated, cost per beneficiary case managed) and compare these to similar metrics from other federal agencies or private sector organizations managing similar workforce development or social support programs. Without such granular data and defined units of service, a direct per-unit cost comparison is not feasible with the information provided.

What are the key performance indicators (KPIs) used to evaluate MAXIMUS FEDERAL SERVICES, INC.'s performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate MAXIMUS FEDERAL SERVICES, INC.'s performance. However, for a contract supporting the Ticket to Work Program, KPIs would likely focus on the effectiveness and efficiency of program operations. These could include metrics related to beneficiary engagement, successful employment outcomes for participants, timeliness of service delivery, accuracy of administrative processes, stakeholder satisfaction (beneficiaries, employers, Employment Networks), and adherence to program guidelines and regulations. The Social Security Administration would typically define these KPIs in the contract's Performance Work Statement (PWS) and use them to assess contractor performance, potentially impacting future contract awards or incentive fees.

What is the track record of MAXIMUS FEDERAL SERVICES, INC. with the Social Security Administration on similar contracts?

MAXIMUS FEDERAL SERVICES, INC. has a significant track record with the Social Security Administration (SSA), as evidenced by this contract being a recompete of previous awards (SS00-10-60103 and SS00-10-60102). This suggests a history of providing services related to the Ticket to Work Program or similar operational support functions. A deeper dive into their performance on these prior contracts would involve reviewing past performance evaluations, any contract disputes or awards, and the overall satisfaction of the SSA with their services. Companies like Maximus often specialize in large-scale government health and human services contracts, indicating a familiarity with federal procurement processes and agency requirements.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this program?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type, like the one used here, is the potential for cost escalation. While the 'fixed fee' provides a defined profit margin for the contractor, the 'cost plus' element means the government reimburses the contractor for all allowable costs incurred. If the contractor's cost management is weak, or if unforeseen circumstances drive up expenses, the total cost to the government can exceed initial estimates. This necessitates robust government oversight to scrutinize costs, ensure they are reasonable and allocable to the contract, and prevent unnecessary spending. The CPFF structure can also reduce the contractor's incentive to control costs aggressively compared to fixed-price contracts, as their profit is fixed regardless of the final cost.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SSA-RFP-15-0019

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Inc (UEI: 082347477)

Address: 1891 METRO CENTER DRIVE, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $81,731,213

Exercised Options: $79,633,454

Current Obligation: $79,633,454

Actual Outlays: $27,055,313

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $18,154,207

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline